For the first time in decades, the USA did not purchase any barrel of Nigerian crude in July and August 2014. That has sparked more pumping in the U.S.
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Novak also boasted that despite being the world’s top oil producer, Russian Federation still has so much oil and gas left in the ground that it could keep pumping for the next 50 years or longer.
And profits have been cut significantly in recent years. May Brent crude LCOK7, -0.79% on London’s ICE Futures exchange fell 36 cents, or 0.6%, to $55.53 a barrel.
Benchmark West Texas Intermediate crude bounced between $51.22 and $54.94 in February, the tightest range since August 2003.
Oil production in Libya has been revived and the activities in this sphere have increased over the past half a year, Hess Corporation CEO John Hess told Sputnik on Monday.
Birol pointed out that one-third of global oil demand growth will come just from Asian trucking. “They deeply appreciate the efforts of OPEC and non-OPEC”, he noted.
Crude prices could spike sharply in a few years unless the oil industry starts soon to invest in major projects again, the International Energy Agency warned on Monday.
“Our interaction with oil-exporting countries is necessary and helpful”, he said.
“The financial health of our companies is much, much better than of many foreign companies”, he said.
In April of past year, Schlumberger said it would reduce activity in the country, partly because of “insufficient payments received in recent quarters”.
Last November, the Saudi’s and OPEC blinked and announced they would cut 1.2 million barrels per day from their output. “Lack of money and lack of infrastructure improvements have led to further cuts in production”. For the next couple of years, the market looks to be well supplied with strong non-OPEC growth and inventories-despite falling-remaining above the five-year average.
Meanwhile in a note to its clients, ratings agency Fitch also said the recovery in U.S. drilling activity will drive up shale oil production in the second half of 2017, “offsetting a portion of recent oil price gains”. Developing countries, primarily in Asia, account for all the projected growth, or roughly 70% of production growth. The number rose 609, the highest since October 2015 and the seventh straight week rig numbers have risen.
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“I think that has stopped some of the selling pressure that we opened with”, said Gene McGillian, head of market research at Tradition Energy.
